Sponsored Feature Presented by Neofin

With the current technology and existing developments worldwide, the banking world is rapidly making a quantum leap into digitizing all its processes. The inception of online financing solutions and loan products in the last three years has created an insatiable customer demand. Customers are searching for loan apps that are swift, prompt, and easy to apply for. 

Personal loan growth returns after dropping early in the pandemic period. According to the LendingTree report, personal loan debt balances spiked 15.2% in 2021, reversing the previous year’s downward movement. Balances are already up 6.6% in the first quarter of 2022 compared to the end of the year.

Financial institutions outside banks, such as micro finance institutions, credit unions, merchants, e-commerce sites, and loan companies, can easily develop their online credit products, but banks were out of the game. Banks were deprived of the opportunity to use the same flexible and fast products.

Though more neo-banks were springing up daily, tackling the demands of consumers demanding online loan services was daunting. Hence, Unex Bank sees an opportunity to answer all queries by launching the first banking instant loan product.

Unex Bank is a leading banking institution that is based in Eastern Europe. With its operation since 1993, the main focus is the development of remote channels for customer service and dynamically developing the network of branches. The bank provides a full range of financial services to corporate businesses, entrepreneurs, and private clients. 

We are getting to the heart of the matter. What kind of revolution did Unex Bank make?

First Banking Lending App – Fresh Cash

Earlier this year, Unex Bank collaborated with Neofin, a no-code loan automation SaaS, has launched the first bank lending platform called Fresh Cash. The distinctive attributes of Fresh Cash have placed it above all other kinds of online loans. 

Applying for Fresh Cash takes a few minutes to process and before you can barely count the tips of your fingers, the loan will be paid into your bank account. This is the first loan product from a bank that has absorbed all the best of online loans:

• Speed of processing — minutes pass from applying for a loan to receiving money.
• Accessibility – the applicant receives money on the card of any bank without visiting offline offices and opening additional accounts.
• Convenient online interface — the lending process takes only a few steps and is as automated as possible for both the client and the bank.

Such maneuverability, seamlessness, and accessibility of the loan product implementation became possible thanks to the technological solutions of the chosen software.

How much time was spent on the realization of such a product? If Unex had used classic loan automation solutions, the implementation would have taken more than 6-8 months and would have required the involvement of a team of IT specialists. 

Therefore, the Neofin platform was chosen. Neofin is an end-to-end solution that specializes in making fully automated products for clients who create credit or loan services. It allows launching lending products within 1 hour and does not require any coding skills, as well as staffing the IT team. 

Neofin covers all the stages of the borrower’s journey. There are loan origination, servicing, management, decisioning, underwriting, and collection modules under the one hood. It also offers out-of-box front-end components and mixed pricing combining subscription and pay-as-you-go models.

Answering the question above, launching Fresh Cash only took one month due to a no-code approach. This month included integration with the core banking system, customization process, and bringing a fully functional product to market.

When we speak about new banking products and want to evaluate success, we need to operate numbers. So, what did Unex get from launching this market disruption product? They launched digital onboarding for all bank products that significantly reduced operating costs and allowed to free employees from other relevant and more complex tasks.

More to come, Unex gained a record number of new leads and decreased customer acquisition costs by 50% in the first three months. This once again confirms that Unex saw the demand and made the right decision by entrusting the decision to an innovative product.

The fintech market is developing rapidly. New digital formats are appearing and replacing yesterday’s successful companies. Banks need to find a way to stay competitive and, at the same time, leverage the strengths, such as reliability, and a large volume of assets, that startups do not have yet.